Why is it so hard for startups to compete with Cadence?
4 days ago
- #Semiconductor
- #EDA
- #Startups
- Cadence, Synopsys, and Mentor Graphics dominate the chip design software market despite widespread dissatisfaction with their tools.
- Startups attempting to disrupt the EDA industry often get acquired by major players or fail to gain mainstream adoption.
- TSMC's certification process for EDA tools creates a significant barrier for startups, as chip designers prefer certified tools for reliability.
- Modern process nodes' complexity makes it harder for startups to develop competitive tools without substantial resources.
- Some startups succeed by offering faster, non-certified tools for specific parts of the design flow, though this limits their market to larger companies.
- Frontend tools present an opportunity for innovation without requiring foundry certification, but growth in this area remains limited.
- The EDA industry's oligopoly stifles innovation, with major players showing little incentive to improve their tools.